ENTERTAINMENT INDUSTRY

TABLE OF CONTENTS
What entertainment industry?

What is entertainment industry?

DEFINATION:
Companies that provide, operate, or engage in amusements and attractions, entertainment exhibitions, ticket sales and also those involved in providing entertainment through radio ,television ,films and theatre.

INTRODUCTION
Entertainment Industry in India comprises of Film Industry and Television Industry. The Indian entertainment industry is among the fastest growing sectors in the country. In the past two decades entertainment industry in India has witnessed explosive growth. In television alone, from a single state owned television network, Doordarshan in 1991, today there are over 300 national, regional and local channels being beamed across the country. Indian film industry is the largest film industry in the world, producing on an average, close to a thousand films a year in all languages. In terms of film production India exceeds Hollywood's production volume by over three times. Some of the fastest growing segments in the Indian entertainment industry include music, cable and satellite television, animation and FM.

LIVE ENTERTAINMENT

ENTERTAIMENT INDUSTRY

ELECTRONIC ENTERTAINMENT

MASS MEDIA ENTERTAINTMENT

MAJOR CONSTITUENTS

KEY DRIVERS OF ENTERTAINMENT INDUSTRY

CONTRIBUTION TO THE COUNTRY

In terms of employment, an estimated 6 million people earn their livelihood from the entertainment industry and this number is all set to grow. Presently, India has the third largest television market in the world behind only china and the USA. India's film and television industry contributes an immense $6.2 billion (Rs 28,305 crores) to the Indian economy. This sector has a total gross output of $20.4 billion (Rs 92,645 crores) and contributes more to the GDP of India than the advertising industry. The combined revenues of the Indian film and television industry were over $7.7 billion (Rs 35,000 crores) in the calendar year 2008. This is expected to grow at a rate of 11% over the next five years, reaching a size of over $13 billion (Rs 60,000 crores).

PROBLEMS FACED BY THE ENTERTAIMENT INDUSTRY

Piracy Lack of a uniform media policy for foreign investment Level playing eld with incumbents Content regulation Price regulation in the television industry Cross-media ownership rules Lack of empowered regulators Merging of the FII and FDI caps Tax treatment of foreign broadcasting companies

KEY PLAYERS IN THE ENTERTAINMENT INDUSTRY

RATING POINTS & MARKET SHARE

AREAS OF GOVERNMENT INVOLVEMENT

FDI REGULATIONS FOR INDIAN ENTERTAINMENT INDUSTRY

Revenue aggregation for an integrated film producer

FUTURE OUTLOOK
With rapid advancements in technology, we believe that convergence will play a very crucial role in the development of the Indian entertainment and media industry where consumers will increasingly be calling the shots in a converged media world. Broadband access and Internet Protocol (IP) will be the technology enablers that will evolve this new breed of consumers. In the converged world of tomorrow, content and access will no longer be in short supply. Opportunities for consumers to access and manipulate content and services will not only be abundant, but overowing. However, consumer time and attention will be limited. Thus, established approaches of pushing exclusive content through nonlinear-channels or networks to mass or segmented audiences will no longer guarantee competitive advantage.

Following are the challenges and opportunities that convergence will bring to the industry:
Consumer needs are expanding beyond the mass media and segmented media to Lifestyle Media, a new approach that will help consumers maximise their limited time and attention to create a rich, personalised and social media environment. Knowledge of consumer activity rather than exclusive ownership of content or distribution assets will become the basis for competition. Businesses that capture consumer activity data and use it to inform business and advertising models will be positioned to succeed. Media marketplace will provide a structure to capitalise on the Lifestyle Media opportunity. Pull oriented media consumption models, such as a media marketplace, in which the consumer is furnished with robust search, research, customisation, conguration and scheduling tools will capture the opportunity associated with Lifestyle Media better than minor modications to existing business practices. Participants in media market place must collaborate on this transformation.

Contd..
Early movers in establishing media marketplaces will have a signicant advantage over late entrants because of network effects, whereby the value of the market place increases as the number of participants increase. Though convergence will bring uncertainty, the ability to gather rich data on consumer activity will also lower the risks and costs associated with testing new revenue or advertising models. Both content providers and advertisers will need to be more accountable for their performance because it will now be measurable. While technology will make it easier to collect detailed consumer information, privacy concerns will rise amongst consumers, regulators and privacy advocates.